India's new Income Tax Act 2025 reshapes tax planning from April 1st.

India's new Income Tax Act 2025 reshapes tax planning from April 1st. While the new regime offers lower rates, revised allowance exemptions under the old regime are making a comeback. HRA exemptions increased to 50% of basic salary in Bengaluru, Pune, Hyderabad and Ahmedabad, matching metro cities. Children's education allowances jumped from Rs.100 to Rs.3,000 monthly, and meal benefits from Rs.50 to Rs.200. However, calculations show high earners above Rs.25 lakh would save only Rs.21,000-25,000 using old regime benefits compared to new regime. The real advantage depends heavily on HRA claims and corporate salary structures. Only 10-15% of Indian corporates currently offer such allowances. Taxpayers must now recalculate their optimal strategy as the old versus new regime debate intensifies under the reformed tax framework.